Foresight Group completes management buy-in of Channel Safety Systems

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Channel Safety Systems (“CSS”), one of the UK’s leading designers, distributors and installers of fire safety systems, emergency lighting and nurse call systems, has completed a management buy in with £1.13 million of private equity funding from Foresight Group, alongside a term loan and working capital facilities from Barclays Corporate and investment from the MBI team. The Foresight funding is from its Planned Exit VCT fund.

Established in 1976, Petersfield-based CSS is a long established player in its markets and has sales of over £8.5 million. Demand for CSS’s products, systems and services is driven by health and safety regulation and, increasingly, carbon reduction initiatives and legislation, which CSS addresses with its LED emergency lighting range. Its main customers are electrical wholesalers, such as Edmundsons, Rexel and Wilts Electrical, from which end users such as electricians, contractors and builders purchase the products. Other customers include retailers and local authorities. The MBI team, led by Peter Mazalon, has extensive market sector experience and secured exclusivity to purchase the business backed by the Foresight Planned Exit fund.

James Livingston, Senior Investment Manager at Foresight Group comments: “Channel Safety Systems has an excellent client base and a strong reputation, built over more than three decades of experience. The MBI team, led by Peter Mazalon, is extremely capable and will be driving growth by building on its significant wholesaler presence and product range in what is becoming an increasingly regulated market place.”

Continues Peter Mazalon of Channel Safety Systems: “We are absolutely delighted to have acquired Channel Safety Systems as it provides strong growth opportunities driven by legislation across its three business areas in Fire Detection, Emergency Lighting and Maintenance Services. We are looking forward to working with the Foresight private equity team to drive long term growth.”

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About Foresight GroupForesight Group is a leading alternative asset manager with a strong private equity team with extensive experience of management buy-outs, management buy-ins and growth capital investments across a broad range of sectors. The private equity team work alongside management teams to enhance, protect and add value to investee businesses whilst generating income and delivering returns to investors.

About Channel Safety Systems (CSS)Founded in 1976 Channel Safety Systems is now a leading manufacturer and supplier of fire detection and notification systems, emergency lighting and DDA nurse call equipment. Channel is also an industry recognised provider of services ranging from fire systems and emergency lighting design right through to fault finding and breakdown as well as commissioning and routine service maintenance.

Since 1976 CSS has been committed to developing and improving the skills of its sales and service engineers ensuring a high standard of knowledge, advice and consistency for Channel’s customers. With Headquarters in Petersfield, Hampshire Channel Safety Systems currently employs approximately 60 people with a turnover of £8.5m. For more information, visit the website at www.channelsafety.co.uk